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 NRG Energy, Inc. Reports Second Quarter Results and Reaffirms 2017 Financial Guidance
   Thursday, August 03, 2017 6:30:13 AM ET

--Launched Transformation Plan targeting cost savings, asset sales and debt reduction

--Reaffirming 2017 Adjusted EBITDA and Free Cash Flow before Growth (FCFbG) guidance

--Closed drop down of remaining 25% interest in NRG Wind TE Holdco to NRG Yield; offered 38 MW portfolio of distributed and small utility-scale solar assets to NRG Yield; offered NRG Yield the opportunity to form a new distributed solar partnership

--Reached agreement with creditors to restructure GenOn Energy, Inc. and its subsidiaries through consensual bankruptcy process

NRG Energy, Inc. (NRG ) today reported second quarter income from continuing operations of $99 million. The loss from continuing operations for the first six months in 2017 of $70 million, or $0.05 per diluted common share, compared to a loss from continuing operations of $220 million, or $0.34 per diluted common share for the first six months in 2016. Adjusted EBITDA for the three and six months ended June 30, 2017, was $685 million and $1,071 million, respectively. Year-to-date cash from continuing operations totaled $112 million.



"NRG delivered another quarter of solid operational and financial performance," said Mauricio Gutierrez, NRG President and Chief Executive Officer. "We are fully engaged in implementing the Transformation Plan we announced in July that will enhance our leading integrated platform, provide a low-cost structure, and create a best-in-class balance sheet needed to thrive in all market cycles."

Consolidated Financial Results

GenOn’s results are excluded from the results for three and six months ended June 30, 2017 and for 2016 following the bankruptcy filing of GenOn and certain of its subsidiaries on June 14, 2017. As a result, NRG no longer consolidates GenOn and its subsidiaries for financial reporting purposes.

                                                                                                                                  
                                                                                                    Three Months Ended                                                                                   Six Months Ended
                                                                      ------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------
($ in millions)                                                                  6/30/17                       6/30/16                                            6/30/17                         6/30/16
------------------------------------------------                      ----------------------------                     -----------------------------                     ------------------------------                     ------------------------------
Income/(Loss) from Continuing Operations                              $   99                                           $  (163 )                                         $    (70 )                                         $   (220 )
Cash From Continuing Operations                                       $  195                                           $   533                                           $    112                                           $    880
Adjusted EBITDA                                                       $  685                                           $   698                                           $  1,071                                           $  1,339
Free Cash Flow Before Growth Investments (FCFbG)   $  240     $   209     $    208     $    259  
------------------------------------------------ -------------------- -- --- -------------------- -------------------- -- ---- -------------------- -------------------- -- ----- -------------------- -------------------- -- ----- --------------------
                                                                                                                                                                                                                                      

Segment Results

Table 1: Income/(Loss) from Continuing Operations

                                                                                                            
($ in millions)                                                                        Three Months Ended                                                                Six Months Ended
                                                                  ------------------------------------------------------------                     ------------------------------------------------------------
Segment                                                                      6/30/17              6/30/16                         6/30/17              6/30/16
--------------------------------------------                      ----------------------------                     -----------                     ----------                     -----------------------------
Generation                                                        $  (90 )                                         $  (458 )                       $  (56 )                       $  (433 )
Retail                                                               341                                               657                            311                             807
Renewables (1)                                                       (47 )                                             (71 )                          (79 )                          (111 )
NRG Yield (1)                                                         45                                                64                             44                              66
Corporate                                                           (150 )                                            (355 )                         (290 )                          (549 )
--------------------------------------------                      ---------------------------                      ----------                      ---------                      ----------------------------
Income/(Loss) from Continuing Operations (2)                      $   99                        $  (163 )                       $  (70 )                       $  (220 )
--------------------------------------------                      == === ====================                      == ==== ==                      == === ==                      == ==== ====================
                                                                                                                                                                                           

(1.) In accordance with GAAP, 2016 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions which closed on September 1, 2016, and March 27, 2017.

(2.) Includes mark-to-market gains and losses of economic hedges.

Table 2: Adjusted EBITDA

                                                                                                    
($ in millions)                                                       Three Months Ended                                                                                   Six Months Ended
                                         -----------------------------------------------------------------------------                     ---------------------------------------------------------------------------------
Segment                                             6/30/17                       6/30/16                                           6/30/17                         6/30/16
-------------------                      ----------------------------                     ----------------------------                     ------------------------------                     ------------------------------
Generation (1)                           $  152                                           $  203                                           $    205                                           $    471
Retail                                      203                                              216                                                336                                                372
Renewables (2)                               56                                               33                                                 82                                                 65
NRG Yield (2)                               270                                              257                                                454                                                455
Corporate                                     4                           (11 )                                               (6 )                                              (24 )
-------------------                      ---------------------------                      ---------------------------                      -----------------------------                      -----------------------------
Adjusted EBITDA (3)                      $  685                        $  698                        $  1,071                        $  1,339  
-------------------                      == === ====================                      == === ====================                      == ===== ====================                      == ===== ====================
                                                                                                                                                                                                        

(1.) Generation regional Reg G reconciliations are included in Appendices A-1 through A-4.

(2.) In accordance with GAAP, 2016 results have been restated to include full impact of the assets in the NRG Yield Drop Down transactions, which closed on September 1, 2016, and March 27, 2017.

(3.) See Appendices A-1 through A-4 for Operating Segment Reg G reconciliations.

Generation: Second quarter Adjusted EBITDA was $152 million, $51 million lower than second quarter 2016 primarily driven by:

-- Gulf Coast Region: $70 million decrease due primarily to lower realized energy margins in Texas from lower hedged prices and higher coal transportation costs, which was partially offset by lower operating expenses in South Central

-- East/West(1): $19 million increase following the distribution from our Doga (Turkey) asset and favorable trading results in BETM

Retail: Second quarter Adjusted EBITDA was $203 million, $13 million lower than second quarter 2016 due primarily to lower margins from mild weather and higher supply costs, which was partially offset by customer growth and reduced operating costs.

Renewables: Second quarter Adjusted EBITDA was $56 million, $23 million higher than second quarter 2016 due to higher solar and wind generation, and insurance recoveries at Ivanpah for property damage incurred during 2016.

NRG Yield: Second quarter Adjusted EBITDA was $270 million, $13 million higher than second quarter 2016 due to the acquisition of the Utah utility-scale solar assets, partially offset by a forced outage at Walnut Creek.

Corporate: Second quarter Adjusted EBITDA was $4 million, $15 million higher than the second quarter 2016 due to the elimination of operating losses at residential solar following its full wind down of operations.

(1 Includes International, BETM and generation eliminations.)

Liquidity and Capital Resources

Table 3: Corporate Liquidity

                                                
($ in millions)                                           6/30/17                               12/31/16
----------------------------------                      ----------                     --------------------------
Cash at NRG-Level (1)                                   $     514                      $                     570
Revolver Availability                                       1,497                                            989
----------------------------------                      ----------                     --------------------------
NRG-Level Liquidity                                     $   2,011                      $                   1,559
Restricted Cash                                               469                                            446
Cash at Non-Guarantor Subsidiaries         238                         368
---------------------------------- -------------------- ------------------------------ --------------------------
Total Liquidity                      $   2,718   $                   2,373
================================== ==================== === ===== ==================== ==== ====================
                                                                                             

(1.) Includes unrestricted cash held at Midwest Generation (a non-guarantor subsidiary), which can be distributed to NRG without limitation.

NRG-Level Cash as of June 30, 2017, was $514 million, a decrease of $56 million from December 31, 2016, and $1.5 billion was available under the Company’s credit facilities at the end of the second quarter 2017. Total liquidity was $2.7 billion, including restricted cash and cash at non-guarantor subsidiaries (primarily NRG Yield).

NRG Strategic Developments

Transformation Plan

On July 12, 2017, NRG announced its Transformation Plan designed to significantly strengthen earnings and cost competitiveness, lower risk and volatility, and create significant shareholder value. The three-part, three-year plan is comprised of the following targets:

Operations and cost excellence -- Cost savings and margin enhancement of $1,065 million recurring, which consists of $590 million of annual cost savings, $215 million net margin enhancement program, $50 million annual reduction in maintenance capital expenditures, and $210 million in permanent SG&A reduction associated with asset sales.

Portfolio optimization -- Targeting $2.5-$4.0 billion of asset sale net cash proceeds, including divestitures of 6 GWs of conventional generation and businesses (excluding GenOn) and the monetization of 50-100% of its interest in NRG Yield, Inc. and its renewables platform.

Capital structure and allocation -- A prioritized capital allocation strategy that targets a reduction in consolidated total (net) debt from $19.5 billion ($18 billion, net) to $6.5 billion ($6 billion, net). Following the completion of the contemplated asset sales, the Company expects $4.8-$6.3 billion in excess cash to be available for allocation through 2020 after achieving its targeted 3.0x net debt / Adjusted EBITDA corporate credit ratio.

The Company expects to fully implement the Transformation Plan by the end of 2020, with significant completion by the end of 2018. The plan also expects to realize (i) $370 million non-recurring working capital improvements through 2020 and (ii) approximately $290 million in one-time costs to achieve.

The full Board of Directors will maintain oversight of the execution of the Transformation Plan with monthly updates provided to the Board’s Finance and Risk Management Committee. A scorecard will be provided to the investment community and will be updated on future quarterly earnings calls.

NRG Yield Drop Downs

On August 1, 2017, the Company closed on the sale of its remaining 25% interest in NRG Wind TE Holdco, a portfolio of 12 wind projects, to NRG Yield for total cash consideration of $41.5 million, excluding working capital adjustments. The transaction also includes potential additional payments to NRG dependent upon actual energy prices for merchant periods beginning in 2027.

The Company offered NRG Yield a 38 MW portfolio of distributed and small utility-scale solar assets, primarily comprised of assets from NRG’s Solar Power Partners (SPP) funds, in addition to other projects developed since the acquisition of SPP. NRG’s interest in SPP is not part of the ROFO Agreement.

In addition, NRG offered NRG Yield, Inc. the opportunity to form a new distributed solar partnership enabling up to $50 million in investment by NRG Yield, Inc.

GenOn Energy Chapter 11 Bankruptcy Filing

On June 12, 2017, NRG, GenOn and certain of its subsidiaries, and the ad hoc group of Noteholders entered into a restructuring support agreement (RSA). Pursuant to the RSA, on June 14, 2017, GenOn, GenOn Americas Generation and certain of their directly and indirectly-owned subsidiaries, (collectively the GenOn Entities) filed voluntary petitions for relief under Chapter 11 of Title 11 of the U.S. Bankruptcy Code, in the United States Bankruptcy Court for the Southern District of Texas, Houston Division.

As a result of the bankruptcy filings and beginning on June 14, 2017, GenOn and its subsidiaries were deconsolidated from NRG’s consolidated financial statements. NRG has determined that this disposal of GenOn and its subsidiaries is a discontinued operation; and, accordingly, the financial information for all historical periods have been recast to reflect GenOn as a discontinued operation. In connection with the disposal, NRG has recorded a loss on disposal of $208 million during the three months ended June 30, 2017.

2017 Guidance

After adjusting for the deconsolidation of GenOn and the impact of the Transformation Plan on 2017 as announced on July 12, 2017, NRG is reaffirming its guidance range for fiscal year 2017 with respect to both Adjusted EBITDA and FCFbG.

Table 4: 2017 Adjusted EBITDA and FCF before Growth Investments Guidance

                                                  
                                      2017
------------------------------------------------ --------------------
($ in millions)                                     Guidance Range
------------------------------------------------ --------------------
Adjusted EBITDA(1)                                    $2,565 - $2,765
Cash From Operations                                  $1,760 - $1,960
Free Cash Flow Before Growth Investments (FCFbG)      $1,290 - $1,490
------------------------------------------------ --------------------
                                                  

(1.) Non-GAAP financial measure; see Appendix Tables A-1 through A-5 for GAAP Reconciliation to Net Income that excludes fair value adjustments related to derivatives. The Company is unable to provide guidance for Net Income due to the impact of such fair value adjustments related to derivatives in a given year.

Capital Allocation Update

On July 20, 2017, NRG declared a quarterly dividend on the company’s common stock of $0.03 per share, payable August 15, 2017, to stockholders of record as of August 1, 2017, representing $0.12 on an annualized basis.

The Company’s common stock dividend, debt reduction and share repurchases are subject to available capital, market conditions and compliance with associated laws and regulations.

Earnings Conference Call

On August 3, 2017, NRG will host a conference call at 8:00 a.m. Eastern to discuss these results. Investors, the news media and others may access the live webcast of the conference call and accompanying presentation materials by logging on to NRG’s website at http://www.nrg.com and clicking on "Investors." The webcast will be archived on the site for those unable to listen in real time.

About NRG

NRG is the leading integrated power company in the U.S., built on the strength of our diverse competitive electric generation portfolio and leading retail electricity platform. A Fortune 500 company, NRG creates value through best in class operations, reliable and efficient electric generation, and a retail platform serving residential and commercial businesses. Working with electricity customers, large and small, we implement sustainable solutions for producing and managing energy, developing smarter energy choices and delivering exceptional service as our retail electricity providers serve almost three million residential and commercial customers throughout the country. More information is available at www.nrg.com. Connect with NRG Energy on Facebook and follow us on Twitter @nrgenergy.

Safe Harbor Disclosure

In addition to historical information, the information presented in this communication includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Exchange Act. These statements involve estimates, expectations, projections, goals, assumptions, known and unknown risks and uncertainties and can typically be identified by terminology such as "may," "should," "could," "objective," "projection," "forecast," "goal," "guidance," "outlook," "expect," "intend," "seek," "plan," "think," "anticipate," "estimate," "predict," "target," "potential" or "continue" or the negative of these terms or other comparable terminology. Such forward-looking statements include, but are not limited to, statements about the Company’s future revenues, income, indebtedness, capital structure, plans, expectations, objectives, projected financial performance and/or business results and other future events, and views of economic and market conditions.

Although NRG believes that its expectations are reasonable, it can give no assurance that these expectations will prove to be correct, and actual results may vary materially. Factors that could cause actual results to differ materially from those contemplated herein include, among others, general economic conditions, hazards customary in the power industry, weather conditions, including wind and solar performance, competition in wholesale power markets, the volatility of energy and fuel prices, failure of customers to perform under contracts, changes in the wholesale power markets, changes in government regulations, the condition of capital markets generally, our ability to access capital markets, unanticipated outages at our generation facilities, adverse results in current and future litigation, failure to identify, execute or successfully implement acquisitions, repowerings or asset sales, our ability to implement value enhancing improvements to plant operations and companywide processes, our ability to implement and execute on our publicly announced transformation plan, including any cost savings, margin enhancement, asset sale, and net debt targets, our ability to proceed with projects under development or the inability to complete the construction of such projects on schedule or within budget, risks related to project siting, financing, construction, permitting, government approvals and the negotiation of project development agreements, our ability to progress development pipeline projects, the timing or completion of the GenOn restructuring, the inability to maintain or create successful partnering relationships, our ability to operate our businesses efficiently, our ability to retain retail customers, our ability to realize value through our commercial operations strategy and the creation of NRG Yield, the ability to successfully integrate businesses of acquired companies, our ability to realize anticipated benefits of transactions (including expected cost savings and other synergies) or the risk that anticipated benefits may take longer to realize than expected, our ability to close the Drop Down transactions with NRG Yield, and our ability to execute our Capital Allocation Plan. Debt and share repurchases may be made from time to time subject to market conditions and other factors, including as permitted by United States securities laws. Furthermore, any common stock dividend is subject to available capital and market conditions.

NRG undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. The adjusted EBITDA and free cash flow guidance are estimates as of August 3, 2017. These estimates are based on assumptions the company believed to be reasonable as of that date. NRG disclaims any current intention to update such guidance, except as required by law. The foregoing review of factors that could cause NRG’s actual results to differ materially from those contemplated in the forward-looking statements included in this presentation should be considered in connection with information regarding risks and uncertainties that may affect NRG’s future results included in NRG’s filings with the Securities and Exchange Commission at www.sec.gov.

                                                                                                                                                                                  
                                                                                                                                        NRG ENERGY, INC. AND SUBSIDIARIES
                                                                                                                                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                                                                                                                   (Unaudited)
                                                                                                                                           Three months ended                                                                                                Six months ended
                                                                                                                                                June 30,                                                                                                         June 30,
                                                                                                     ----------------------------------------------------------------------------------------                            ---------------------------------------------------------------------------------
(In millions, except for per share amounts)                                                                          2017                                   2016                                                      2017                                2016
-------------------------------------------------------------------------------                      -------------------------------------                     -------------------------------------                     -------------------------------------                     ------------------------------
Operating Revenues
  Total operating revenues                                                                           $         2,701                        $         2,248                        $         5,083                        $  4,907  
                                                                                                     ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      -- ----- --------------------
Operating Costs and Expenses
  Cost of operations                                                                                           1,837                                                     1,443                                                     3,696                                              3,271
  Depreciation and amortization                                                                                  260                                                       262                                                       517                                                528
  Impairment losses                                                                                               63                                                        56                                                        63                                                 56
  Selling, general and administrative                                                                            223                                                       266                                                       482                                                520
  Acquisition-related transaction and integration costs                                                            1                                                         5                                                         2                                                  6
  Development activity expenses                                                                                   18                                     18                                     35                              44  
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
    Total operating costs and expenses                                                                         2,402                                                     2,050                                                     4,795                                              4,425
      Other income - affiliate                                                                                    42                                                        48                                                        90                                                 96
      Gain/(loss) on sale of assets                                                                                2                                    (83 )                                                       4                             (83 )
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
Operating Income                                                                                                 343                                    163                                    382                             495  
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
Other Income/(Expense)
Equity in (losses)/earnings of unconsolidated affiliates                                                          (3 )                                                       4                                                         2                                                 (3 )
  Gain/(impairment loss) on investment                                                                --                                                         7                                            --                                               (139 )
  Other income, net                                                                                               10                                                         5                                                        18                                                 22
  Loss on debt extinguishment, net                                                                    --                                                       (80 )                                                      (2 )                                              (69 )
  Interest expense                                                                                              (247 )                                                    (237 )                                                    (471 )                                             (479 )
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
    Total other expense                                                                                         (240 )                                                    (301 )                                                    (453 )                                             (668 )
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
Income/(Loss) from Continuing Operations Before Income Taxes                                                     103                                                      (138 )                                                     (71 )                                             (173 )
  Income tax expense/(benefit)                                                                                     4                                     25                                     (1 )                                               47  
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
Income/(Loss) from Continuing Operations                                                                          99                                                      (163 )                                                     (70 )                                             (220 )
  Loss from discontinued operations, net of income tax                                                          (741 )                                                    (113 )                                                    (775 )                                               (9 )
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
Net Loss                                                                                                        (642 )                                                    (276 )                                                    (845 )                                             (229 )
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
                                                                                                                 (16 )                                                      (5 )                                                     (55 )                                              (40 )
  Less: Net loss attributable to noncontrolling interest and
  redeemable
  noncontrolling interests
                                                                                                     --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      -------  --------------------
Net Loss Attributable to NRG Energy, Inc.                                                                       (626 )                                                    (271 )                                                    (790 )                                             (189 )
  Dividends for preferred shares                                                                      --                                            --                                            --                                                  5
  Gain on redemption of preferred shares                                                              --                                    (78 )                                          --                             (78 )
                                                                                                     ------------------------------------                      ------------------------------------                      ------------------------------------                      -----------------------------
Loss Available for Common Stockholders                                                               $          (626 )                                               $    (193 )                                         $          (790 )                                         $   (116 )
                                                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      == ===== ====================
Loss per Share Attributable to NRG Energy, Inc. Common
Stockholders
                                                                                                                 316                                                       315                                                       316                                                315
  Weighted average number of common shares outstanding -- basic and
  diluted
                                                                                                     $          0.36                                                 $   (0.25 )                                         $         (0.05 )                                         $  (0.34 )
  Income/(loss) from continuing operations per weighted average
  common
  share -- basic and diluted
                                                                                                     $         (2.34 )                                               $   (0.36 )                                         $         (2.45 )                                          $ (0.03 )
  Loss from discontinued operations per weighted average common
  share --
  basic and diluted
                                                                                                     ------- ------- --------------------                      ------- ------- --------------------                      ------- ------- --------------------                      -- ----- --------------------
Loss per Weighted Average Common Share -- Basic and Diluted                              $         (1.98 )                                               $   (0.61 )                                         $         (2.50 )                                         $  (0.37 )
                                                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      == ===== ====================
Dividends Per Common Share                                                                                 $    0.03                              $    0.03                        $          0.06                        $   0.18  
                                                                                                     ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      == ===== ====================
                                                                                                                                                                                                                                                                                             
                                                                                                                                                               
                                                                                                            NRG ENERGY, INC. AND SUBSIDIARIES
                                                                                                      CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)
                                                                                                                                 (Unaudited)
                                                                                                   Three months ended June                                                                                           Six months ended June
                                                                                                             30,                                                                                                              30,
                                                               ----------------------------------------------------------------------------------------                            ----------------------------------------------------------------------------------
                                                                                               2016                   2015                                                      2017                                2016
                                                               -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------
                                                                                                                                                               (In millions)
Net loss                                                       $          (642 )                                         $          (276 )                                         $          (845 )                                         $    (229 )
Other comprehensive income/(loss), net of tax
                                                                            (5 )                                                      (3 )                                                      (1 )                                               (35 )
  Unrealized loss on derivatives, net of income tax expense of
  $0,
  $1, $1, and $2
                                                                             1                                                        (3 )                                                       8                                                   3
  Foreign currency translation adjustments, net of income tax
  expense
  of $0, $0, $0, and $0
                                                                             1                                                        (2 )                                                       1                                                   1
  Available-for-sale securities, net of income tax expense of
  $0,
  $0, $0, and $0
                                                                            27                         --                                     27                                1  
  Defined benefit plans, net of income tax expense of $0, $0,
  $0,
  and $0
                                                               --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------  --------------------
    Other comprehensive income/(loss)                                       24                                     (8 )                                                      35                              (30 )
                                                               ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------
Comprehensive loss                                                        (618 )                                                    (284 )                                                    (810 )                                              (259 )
                                                                           (17 )                                                     (16 )                                                     (56 )                                               (68 )
  Less: Comprehensive loss attributable to noncontrolling
  interest
  and redeemable noncontrolling interests
                                                               --------------  --------------------                      --------------  --------------------                      --------------  --------------------                      --------  --------------------
Comprehensive loss attributable to NRG Energy, Inc.                       (601 )                                                    (268 )                                                    (754 )                                              (191 )
  Dividends for preferred shares                                --                                            --                                            --                                                   5
  Gain on redemption of preferred shares                        --                                    (78 )                                          --                              (78 )
                                                               ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------
Comprehensive loss available for common stockholders           $          (601 )                                         $          (190 )                                         $          (754 )                                         $    (118 )
                                                               ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ==== ==== ====================
                                                                                                                                                                                                                                                        
                                                                                                                        
                                                                 NRG ENERGY, INC. AND SUBSIDIARIES
                                                               CONDENSED CONSOLIDATED BALANCE SHEETS
                                                                                              June 30, 2017                                    December 31, 2016
                                                                                  -------------------------------------                     ----------------------
(In millions, except shares)                                                                   (unaudited)                                   
--------------------------------------------------------------------------------- -------------------------------------                     ----------------------
                                      ASSETS
Current Assets
  Cash and cash equivalents                                                       $           752                                           $                 938
  Funds deposited by counterparties                                                            19                                                               2
  Restricted cash                                                                             469                                                             446
  Accounts receivable, net                                                                  1,162                                                           1,058
  Inventory                                                                                   713                                                             721
  Derivative instruments                                                                      644                                                           1,067
  Cash collateral paid in support of energy risk management activities                        277                                                             150
  Current assets - held for sale                                                               33                                                               9
  Prepayments and other current assets                                                        400                                                             404
  Current assets - discontinued operations                                         --                                        1,919
                                                                                  --------------  --------------------                      --------------------
    Total current assets                                                                    4,469                                        6,714
                                                                                  ------------------------------------                      ----------------------
Property, plant and equipment, net                                                         15,302                                       15,369
                                                                                  ------------------------------------                      ----------------------
Other Assets
  Equity investments in affiliates                                                          1,127                                                           1,120
  Notes receivable, less current portion                                                        9                                                              16
  Goodwill                                                                                    662                                                             662
                                                                                            1,893                                                           1,973
  Intangible assets, net
  Nuclear decommissioning trust fund                                                          637                                                             610
  Derivative instruments                                                                      226                                                             181
  Deferred income taxes                                                                       211                                                             225
  Non-current assets held-for-sale                                                             10                                                              10
  Other non-current assets                                                                    659                                                             841
  Non-current assets - discontinued operations                                     --                                        2,961
                                                                                  ------------------------------------                      ----------------------
    Total other assets                                                                      5,434                                        8,599
                                                                                  ------------------------------------                      ----------------------
Total Assets                                                                      $        25,205                        $              30,682
                                                                                  ======= ======= ====================                      ========== ==========
          LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
  Current portion of long-term debt and capital leases                            $         1,042                                           $                 516
  Accounts payable                                                                            757                                                             782
  Accounts payable - affiliate                                                                 17                                                              31
  Derivative instruments                                                                      711                                                           1,092
  Cash collateral received in support of energy risk management                                19                                                              81
  activities
  Accrued expenses and other current liabilities                                              810                                                             990
  Accrued expenses and other current liabilities - affiliate                                  164                                                  --
  Current liabilities - discontinued operations                                    --                                        1,210
                                                                                  ------------------------------------                      ----------------------
    Total current liabilities                                                               3,520                                        4,702
                                                                                  ------------------------------------                      ----------------------
Other Liabilities
  Long-term debt and capital leases                                                        15,842                                                          15,957
  Nuclear decommissioning reserve                                                             262                                                             287
  Nuclear decommissioning trust liability                                                     367                                                             339
  Deferred income taxes                                                                        20                                                              20
  Derivative instruments                                                                      293                                                             284
  Out-of-market contracts, net                                                                219                                                             230
  Non-current liabilities held-for-sale                                                        13                                                              11
  Other non-current liabilities                                                             1,135                                                           1,151
  Non-current liabilities - discontinued operations                                --                                        3,209
                                                                                  ------------------------------------                      ----------------------
    Total non-current liabilities                                                          18,151                                       21,488
                                                                                  ------------------------------------                      ----------------------
Total Liabilities                                                                          21,671                                       26,190
                                                                                  ------------------------------------                      ----------------------
Redeemable noncontrolling interest in subsidiaries                                             51                                                              46
Commitments and Contingencies
Stockholders’ Equity
  Common stock                                                                                  4                                                               4
  Additional paid-in capital                                                                8,383                                                           8,358
  Retained deficit                                                                         (4,874 )                                                        (3,787 )
  Less treasury stock, at cost -- 101,858,284 and 102,140,814 shares,          (2,392 )                                                        (2,399 )
  respectively
  Accumulated other comprehensive loss                                                       (100 )                                                          (135 )
  Noncontrolling interest                                                                   2,462                                        2,405
                                                                                  ------------------------------------                      ----------------------
Total Stockholders’ Equity                                       3,483                                        4,446
                                                                                  ------------------------------------                      ----------------------
Total Liabilities and Stockholders’ Equity             $        25,205                        $              30,682
                                                                                  ======= ======= ====================                      ========== ==========
                                                                                                                                                                   
                                                                           
                                                                    NRG ENERGY, INC. AND SUBSIDIARIES
                                                             CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                                                               (Unaudited)
                                                                                                             Six months ended June 30,
                                                                          -----------------------------------------------------------------------------------------------
                                                                                          2017                                   2016
                                                                          -------------------------------------                     -------------------------------------
                                                                                                                   (In millions)
Cash Flows from Operating Activities
Net loss                                                                             (845 )                                                    (229 )
Loss from discontinued operations, net of income tax                                 (775 )                                                      (9 )
                                                                          ------------------------------------                      ------------------------------------
  Loss from continuing operations                                         $           (70 )                                         $          (220 )
  Adjustments to reconcile net loss to net cash provided by operating
  activities:
    Distributions and equity in earnings of unconsolidated affiliates                  26                                                        32
    Depreciation and amortization                                                     517                                                       528
    Provision for bad debts                                                            18                                                        20
    Amortization of nuclear fuel                                                       24                                                        26
    Amortization of financing costs and debt discount/premiums                         29                                                        29
    Adjustment for debt extinguishment                                     --                                                        14
    Amortization of intangibles and out-of-market contracts                            51                                                        82
    Amortization of unearned equity compensation                                       16                                                        16
    Impairment losses                                                                  63                                                       195
    Changes in deferred income taxes and liability for uncertain tax                    8                                                         1
    benefits
    Changes in nuclear decommissioning trust liability                                  2                                                        13
    Changes in derivative instruments                                                   7                                                        (7 )
    Changes in collateral posted in support of risk management activities            (189 )                                                     323
    Proceeds from sale of emission allowances                                          11                                                        17
    Loss on sale of assets                                                            (22 )                                                      83
    Changes in other working capital                                                 (379 )                                                    (272 )
                                                                          ------------------------------------                      ------------------------------------
Cash provided by continuing operations                                                112                                                       880
Cash (used) by discontinued operations                                                (38 )                                  (69 )
                                                                          ------------------------------------ -------------------- ------------------------------------
Net Cash Provided by Operating Activities                                              74                                    811  
                                                                          ------------------------------------                      ------------------------------------
Cash Flows from Investing Activities
    Acquisitions of businesses, net of cash acquired                                  (16 )                                                     (17 )
    Capital expenditures                                                             (542 )                                                    (442 )
    Increase in notes receivable                                                        8                                                        (3 )
    Purchases of emission allowances                                                  (30 )                                                     (27 )
    Proceeds from sale of emission allowances                                          59                                                        25
    Investments in nuclear decommissioning trust fund securities                     (279 )                                                    (280 )
    Proceeds from the sale of nuclear decommissioning trust fund                      277                                                       267
    securities
    Proceeds from renewable energy grants and state rebates                             8                                                        10
    Proceeds from sale of assets, net of cash disposed of                              35                                                        25
    Investments in unconsolidated affiliates                                          (30 )                                                       1
    Other                                                                              18                                     31  
                                                                          ------------------------------------                      ------------------------------------
Cash used by continuing operations                                                   (492 )                                                    (410 )
Cash used by discontinued operations                                                  (53 )                                                     (60 )
                                                                          ------------------------------------                      ------------------------------------
Net Cash Used by Investing Activities                                                (545 )                                                    (470 )
                                                                          ------------------------------------                      ------------------------------------
Cash Flows from Financing Activities
    Payment of dividends to common and preferred stockholders                         (19 )                                                     (57 )
    Payment for preferred shares                                           --                                                      (226 )
    Net receipts from settlement of acquired derivatives that include                   2                                                         4
    financing elements
    Proceeds from issuance of long-term debt                                          946                                                     3,223
    Payments for short and long-term debt                                            (530 )                                                  (3,505 )
    Receivable from affiliate                                                        (125 )                                          --
    Distributions to, net of contributions from, noncontrolling interest               14                                                       (21 )
    in subsidiaries
    Payment of debt issuance costs                                                    (36 )                                                     (35 )
    Other - contingent consideration                                                  (10 )                                                     (10 )
                                                                          ------------------------------------                      ------------------------------------
Cash provided/(used) by continuing operations                                         242                                                      (627 )
Cash used by discontinued operations                                                 (224 )                                                      97  
                                                                          ------------------------------------                      ------------------------------------
Net Cash provided/(used) by Financing Activities                                       18                                   (530 )
                                                                          ------------------------------------                      ------------------------------------
    Effect of exchange rate changes on cash and cash equivalents                       (8 )                                                      (3 )
                                                                          ------------------------------------                      ------------------------------------
Change in Cash from discontinued operations                                          (315 )                                                     (32 )
                                                                          ------------------------------------                      ------------------------------------
Net Decrease in Cash and Cash Equivalents, Funds Deposited by                        (146 )                                                    (160 )
Counterparties and Restricted Cash
Cash and Cash Equivalents, Funds Deposited by Counterparties                        1,386                                  1,322  
and Restricted Cash at Beginning
of Period
                                                                          --------------  --------------------                      --------------  --------------------
Cash and Cash Equivalents, Funds Deposited by Counterparties              $         1,240                        $         1,162  
and Restricted Cash at End of
Period
                                                                          ======= ======= ====================                      ======= ======= ====================
                                                                                                                                                     

Appendix Table A-1: Second Quarter 2017 Adjusted EBITDA Reconciliation by Operating Segment

The following table summarizes the calculation of Adj. EBITDA and provides a reconciliation to income/(loss) from continuing operations:

                                                                                                                                                                                                                                        
($ in millions)                          Gulf             East/         Generation         Retail         Renewables           NRG             Corp/        Total 
                                                            Coast                              West(a)                                                                                                                                          Yield                               Elim
--------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
(Loss)/Income from                            (148 )                                58              (90 )                               341              (47 )                                45             (150 )                       99  
Continuing Operations
================================= ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ===== ====================
Plus:                                                                                      --
  Interest expense, net                                             0                                   8                                   8                                   1                                  29                                  84                                 122                        244
  Income tax                                                       (2 )                                 3                                   1                                 (11 )                                (5 )                                 8                                  11                          4
  Depreciation and amortization                                    69                                  26                                  95                                  29                                  50                                  78                                   8                        260
  ARO Expense                                                       4                                   2                                   6                      --                                   1                                   1                                  (1 )                        7
  Contract amortization                                             4                                   1                                   5                      --                      --                                  17                      --                         22
  Lease amortization                             0               (2 )                                (2 )                    --   --   --   --      (2 )
--------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
EBITDA                                                            (73 )                                96                                  23                                 360                                  28                                 233                                 (10 )                      634
                                                                   15                                   5                                  20                                  (3 )                                (5 )                                34                                   1                         47
  Adjustment to reflect NRG
  share of adjusted EBITDA in
  unconsolidated
  affiliates
                                                                  (10 )                    --                                (10)                      --                      --                                   1                      --                         (9 )
  Acquisition-related transaction
  & integration costs
  Reorganization costs                                 --                      --                      --                      --                      --                      --                                   9                          9
  Deactivation costs                                   --                                  (1 )                                (1 )                    --                      --                      --                                   5                          4
  Other non recurring charges                                     (13 )                                (3 )                               (16 )                                 2                                   8                                   2                                                             (4 )
  Impairments                                                      41                      --                                  41                      --                                  22                      --                      --                         63
                                               105              (11 )                                94             (156 )                                 3   --   --     (59 )
  Mark to market (MtM)
  (gains)/losses on economic
  hedges
--------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
Adjusted EBITDA                                                    65                                  87                                 152                                 203                                  56                                 270                                   4                        685
                                                                                                                                                                                                                                                                                                                          

(a) Includes International, BETM and generation eliminations.

Second Quarter 2017 condensed financial information by Operating Segment:

                                                                                                              
($ in millions)                         Gulf     East/   Generation   Retail   Renewables    NRG Yield   Corp/Elim   Total 
                                                           Coast                      West(a)
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- --------- -------------------- --------- -------------------- ----- --------------------
  Operating revenues                                        607                          349                             956                       1,605                             126                            301                           (314 )                    2,674
  Cost of sales                          363       134          497    1,213            3          14        (305 )                    1,422  
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- --------- -------------------- --------- -------------------- ----- --------------------
Economic gross margin                                       244                          215                             459                         392                             123                            287                             (9 )                    1,252
                                                            130                          124                             254                          80                              39                             63                            (15 )                      421
  Operations & maintenance and other
  cost of operations (b)
                                                             29                           19                              48                         106                              14                              6                             40                        214
  Selling, marketing,
  general and
  administrative(c)
  Other expense/(income)                  20       (15 )                             5        3           14         (52 )                          (38 )                      (68 )
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- --------- -------------------- --------- -------------------- ----- --------------------
Adjusted EBITDA                           65        87          152      203           56         270           4     685  
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- --------- -------------------- --------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                   

(a) Includes International, BETM and generation eliminations.

(b) Excludes deactivation costs of $4 million.

(c) Excludes reorganization costs of $9 million.

The following table reconciles the condensed financial information to Adjusted EBITDA:

                                                                                     
($ in millions)                     Condensed   Interest, tax,           MtM         Deactivation      Other adj.     Adjusted  
                                                       financial                       depr. amort.                                                                                                                                                         EBITDA
                                                      information
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
  Operating revenues                                       2,701                                  14                                                      (41 )                    --                      --                         2,674
  Cost of operations                    1,412               (8 )                                  18   --   --      1,422  
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
Gross margin                                               1,289                                  22                                                      (59 )                    --                      --                         1,252
                                                             425                                                                               --                                  (4 )                    --                           421
  Operations & maintenance
  and other cost of operations
                                                             223                      --                                           --                      --                                  (9 )                         214
  Selling, marketing, general &
  administrative (a)
  Other expense/(income)                  542             (260 )                      --   --             (348 )                         (66 )
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
Income/(Loss) from                         99              282                (59 )                                 4              357        685  
Continuing Operations
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                                     

(a) Other adj. includes reorganization costs of $9 million.

Appendix Table A-2: Second Quarter 2016 Adjusted EBITDA Reconciliation by Operating Segment

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to income/(loss) from continuing operations:

                                                                                                                                                                                                                                               
($ in millions)                                 Gulf             East/         Generation         Retail         Renewables           NRG             Corp/        Total 
                                                                   Coast                              West(a)                                                                                                                                          Yield                               Elim
---------------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
(Loss)/Income from Continuing Operations             (341 )                              (117 )                              (458 )                               657              (71 )                                64             (355 )                     (163 )
======================================== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ===== ====================
Plus:
  Interest expense, net                                       --                                  11                                  11                      --                                  24                                  68                                 133                        236
  Income tax                                                  --                      --                      --                      --                                  (4 )                                12                                  17                         25
  Loss on debt extinguishment                                 --                      --                      --                      --                      --                      --                                  80                         80
  Depreciation and amortization                                           70                                  27                                  97                                  29                                  47                                  75                                  14                        262
  ARO Expense                                                              3                                   4                                   7                      --                      --                      --                      --                          7
  Contract amortization                                                    3                                   1                                   4                                   2                      --                                  17                      --                         23
  Lease amortization                       --               (2 )                                (2 )                    --   --   --   --      (2 )
---------------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
EBITDA                                                                  (265 )                               (76 )                              (341 )                               688                                  (4 )                               236                                (111 )                      468
                                                                           2                                   6                                   8                      --                                   2                                  18                                   4                         32
  Adjustment to reflect NRG
  share of adjusted EBITDA in
  unconsolidated
  affiliates
   
                                                              --                                   1                                   1                      --                      --                      --                                   4                          5
  Acquisition-related
  transaction & integration costs
  Reorganization costs                                        --                      --                      --                      --                                   1                      --                                   8                          9
  Deactivation costs                                          --                                   5                                   5                      --                      --                      --                      --                          5
  Loss on sale of business                                    --                      --                      --                      --                      --                      --                                  83                         83
  Other non recurring charges                                              9                                  (1 )                                 8                                   2                                   5                                   3                                 (11 )                        7
  Impairments                                                 --                                  17                                  17                      --                                  27                      --                                  12                         56
                                                      389              116              505             (474 )                                 2   --   --      33  
  Mark to market (MtM)
  (gains)/losses on economic
  hedges
---------------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
Adjusted EBITDA                                       135               68              203              216               33              257              (11 )                      698  
---------------------------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                                                 

(a) Includes International, BETM and generation eliminations.

Second Quarter 2016 condensed financial information by Operating Segment:

                                                                                                                                              
($ in millions)                   Gulf     East/   Generation   Retail   Renewables     NRG    Corp/Elim   Total 
                                                     Coast                      West(a)                                                                                                                  Yield
------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- --------- -------------------- ----- --------------------
  Operating revenues                                  655                          389                           1,044                       1,539                             103                        300                           (251 )                    2,735
  Cost of sales                    334       138          472    1,123            4      14        (250 )                    1,363  
------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- --------- -------------------- ----- --------------------
Economic gross margin                                 321                          251                             572                         416                              99                        286                             (1 )                    1,372
                                                      164                          155                             319                          84                              48                         63                             (8 )                      506
  Operations & maintenance and
  other cost of operations (b)
                                                       35                           39                              74                         112                              14                          3                             54                        257
  Selling, marketing, general
  & administrative (c)
  Other expense/(income) (d)       (13 )                        (11 )                           (24 )                         4            4     (37 )                          (36 )                      (89 )
------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- --------- -------------------- ----- --------------------
Adjusted EBITDA                    135        68          203      216           33     257         (11 )                      698  
------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- --------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                         

(a) Includes International, BETM and generation eliminations.

(b) Excludes deactivation costs of $5 million.

(c) Excludes reorganization costs of $9 million.

(d) Excludes loss on sale of business of $83 million, loss on debt extinguishment of $80 million, and impairments of $56 million.

The following table reconciles the condensed financial information to Adjusted EBITDA:

                                                                                                                       
($ in millions)                     Condensed   Interest, tax,         MtM         Deactivation      Other adj.     Adjusted  
                                                       financial                       depr. amort.                                                                                                                                    EBITDA
                                                      information
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
  Operating revenues                                       2,248                                  14                                 473                      --                      --                         2,735
  Cost of operations                      932               (9 )                               440   --   --      1,363  
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
Gross margin                                               1,316                                  23                                  33                      --                      --                         1,372
                                                             511                                                          --                                  (5 )                    --                           506
  Operations & maintenance
  and other cost of operations
                                                             266                      --                      --                      --                                  (9 )                         257
  Selling, marketing, general &
  administrative (a)
  Other expense/(income) (b)              702             (555 )                    --   --             (226 )                         (89 )
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
(Loss)/Income from                       (163 )                               578               33                5              235        698  
Continuing Operations
------------------------------- -------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                

(a) Other adj. includes reorganization costs of $9 million.

(b) Other adj. includes loss on sale of business of $83 million, loss on debt extinguishment of $80 million, and impairments of $56 million.

Appendix Table A-3: YTD Second Quarter 2017 Adjusted EBITDA Reconciliation by Operating Segment

The following table summarizes the calculation of Adj. EBITDA and provides a reconciliation to income/(loss) from continuing operations:

                                                                                                                                                                                                                                        
($ in millions)                          Gulf             East/         Generation         Retail         Renewables        NRG Yield          Corp/            Total      
                                         Coast                              West(a)                                                                                                                                                                              Elim
----------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- --------------------
(Loss)/Income from Continuing                 (105 )                                49              (56 )                               311              (79 )                                44             (290 )                               (70 )
Operations
=================================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ====================
Plus:
  Interest expense, net             --                                  17                                  17                                   3                                  50                                 160                                 236                                 466
  Income tax                        --                                   2                                   2                                  (8 )                               (10 )                                 7                                   8                                  (1 )
  Loss on debt extinguishment       --                      --                      --                      --                                   2                      --                      --                                   2
  Depreciation and amortization                138                                  54                                 192                                  57                                  99                                 153                                  16                                 517
  ARO Expense                                    7                                   6                                  13                      --                                   1                                   2                      --                                  16
  Contract Amortization                          8                                   2                                  10                                   1                      --                                  34                      --                                  45
  Lease amortization                --               (4 )                                (4 )                    --   --   --   --               (4 )
----------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- --------------------
EBITDA                                          48                                 126                                 174                                 364                                  63                                 400                                 (30 )                               971
                                                21                                  12                                  33                                  (6 )                               (10 )                                47                                   1                                  65
  Adjustment to reflect NRG share
  of adjusted EBITDA in
  unconsolidated
  affiliates
                                               (10 )                    --                                 (10 )                    --                      --                                   2                      --                                  (8 )
  Acquisition-related transaction &
  integration costs
  Reorganization costs              --                      --                      --                      --                      --                      --                                  16                                  16
  Deactivation costs                --                                   1                                   1                      --                      --                      --                                   4                                   5
  Other non recurring charges                  (13 )                                (3 )                               (16 )                                (2 )                                10                                   5                                   3                      --
  Impairments                                   41                      --                                  41                      --                                  22                      --                      --                                  63
                                               (17 )                                (1 )                               (18 )                               (20 )                                (3 )                    --   --              (41 )
  Market to market (MtM)
  (gains)/losses on economic
  hedges
----------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- --------------------
Adjusted EBITDA                                 70              135              205              336               82              454               (6 )                             1,071  
----------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                

(a) Includes International, BETM and generation eliminations.

YTD Second Quarter 2017 condensed financial information by Operating Segment:

                                                                                                              
($ in millions)                         Gulf     East/   Generation   Retail   Renewables     NRG    Corp/   Total 
                                                           Coast                      West(a)                                                                                                                  Yield                      Elim
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
  Operating revenues                                      1,103                          694                           1,797                       2,939                             217                        536                       (536 )                    4,953
  Cost of sales                          655       294          949    2,211            7      30    (514 )                    2,683  
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
Economic gross margin                                       448                          400                             848                         728                             210                        506                        (22 )                    2,270
                                                            298                          236                             534                         159                              73                        131                        (23 )                      874
  Operations & maintenance and other
  cost of operations (b)
   
                                                             35                           69                             104                         226                              28                         10                         98                        466
  Selling, marketing, general &
  administrative (c)
  Other expense/(income) (d)              45       (40 )                             5        7           27     (89 )                      (91 )                     (141 )
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
Adjusted EBITDA                           70       135          205      336           82     454      (6 )                    1,071  
------------------------------------ -------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                           

(a) Includes International, BETM and generation eliminations.

(b) Excludes deactivation costs of $5 million.

(c) Excludes reorganization costs of $16 million.

(d) Excludes impairments of $63 million, acquisition-related transaction & integration costs of $8 million, and loss on debt extinguishment of $2 million.

The following table reconciles the condensed financial information to Adjusted EBITDA:

                                                                                                      
($ in millions)                   Condensed   Interest, tax,           MtM         Deactivation      Other adj.     Adjusted  
                                  financial                       depr. amort.                                                                                                                                                         EBITDA
                                 information
------------------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
  Operating revenues                  5,083                                  29                                                     (159 )                    --                      --                         4,953
  Cost of operations                  2,817              (16 )                                (118 )                    --   --      2,683  
------------------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
Gross margin                          2,266                                  45                                                      (41 )                    --                      --                         2,270
                                        879                                                                               --                                  (5 )                    --                           874
  Operations & maintenance and
  other cost of operations
                                        482                                                                                                                                                                  (16 )                         466
  Selling, marketing, general &
  administrative(a)
  Other expense/(income) (b)            975           (1,039 )                      --   --             (136 )                        (141 )
------------------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
(Loss)/Income from Continuing           (70 )                             1,084                (41 )                                 5              152      1,071  
Operations
------------------------------- ----------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
                                                                                                                                                                                                                                                

(a) Other adj. includes reorganization costs of $16 million.

(b) Other adj. includes impairments of $63 million, acquisition-related transaction & integration costs of $8 million, and loss on debt extinguishment of $2 million.

Appendix Table A-4: YTD Second Quarter 2016 Adjusted EBITDA Reconciliation by Operating Segment

The following table summarizes the calculation of Adjusted EBITDA and provides a reconciliation to income/(loss) from continuing operations:

                                                                                                                                                                                                                                      
($ in millions)                        Gulf             East/         Generation         Retail         Renewables           NRG           Corp/Elim      Total 
                                       Coast                              West(a)                                                                                                                                          Yield
--------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
(Loss)/Income from Continuing               (471 )                                38             (433 )                               807             (111 )                                66             (549 )                     (220 )
Operations
================================= ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ============== ==================== ===== ====================
Plus:
  Interest expense, net           --                                  17                                  17                      --                                  51                                 142                                 266                        476
  Income tax                      --                      --                      --                                   1                                 (11 )                                12                                  45                         47
  Loss on debt extinguishment     --                      --                      --                      --                      --                      --                                  69                         69
  Depreciation and amortization              143                                  54                                 197                                  57                                  95                                 149                                  30                        528
  ARO Expense                                  5                                   8                                  13                      --                                   1                                   1                                  (1 )                       14
  Contract Amortization                        6                                   4                                  10                                   4                      --                                  40                                  (2 )                       52
  Lease amortization              --               (4 )                                (4 )                    --   --   --   --      (4 )
--------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
EBITDA                                      (317 )                               117                                (200 )                               869                                  25                                 410                                (142 )                      962
                                               5                                  12                                  17                      --                                   2                                  42                                   5                         66
  Adjustment to reflect NRG
  share of adjusted EBITDA in
  unconsolidated
  affiliates
                                  --                                   1                                   1                      --                      --                      --                                   6                          7
  Acquisition-related transaction
  & integration costs
   
  Reorganization costs                         1                      --                                   1                                   5                                   3                      --                                  10                         19
  Deactivation costs              --                                  13                                  13                      --                      --                      --                      --                         13
  Loss on sale of business        --                      --                      --                      --                      --                      --                                  83                         83
  Other non recurring charges                 10                                  (4 )                                 6                                   6                                   7                                   3                      --                         22
  Impairments                     --                                  17                                  17                      --                                  27                      --                                  12                         56
  Impairment loss on investment              137                      --                                 137                      --                      --                      --                                   2                        139
                                             414               65              479             (508 )                                 1   --   --     (28 )
  MtM (gains)/losses on
  economic hedges
--------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
Adjusted EBITDA                              250              221              471              372               65              455              (24 )                    1,339  
--------------------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- ----- --------------------
                                                                                                                                                                                                                                                                                                     

(a) Includes International, BETM and generation eliminations.

YTD Second Quarter 2016 condensed financial information by Operating Segment:

                                                                                                                             
($ in millions)                     Gulf     East/   Generation   Retail   Renewables     NRG    Corp/   Total 
                                    Coast                      West(a)                                                                                                                  Yield                      Elim
---------------------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
  Operating revenues               1,229                          916                           2,145                       2,909                             198                        551                       (445 )                    5,358
  Cost of sales                      596       343          939    2,148            9      30    (447 )                    2,679  
---------------------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
Economic gross margin                633                          573                           1,206                         761                             189                        521                          2                      2,679
                                     329                          305                             634                         168                              82                        126                         (4 )                    1,006
  Operations & maintenance
  and other cost of operations (b)
                                      35                          100                             135                         221                              28                          6                        111                        501
  Selling, marketing, general &
  administrative (c)
  Other expense/(income) (d)          19       (53 )                           (34 )                         0           14     (66 )                      (81 )                     (167 )
---------------------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
Adjusted EBITDA                      250       221          471      372           65     455     (24 )                    1,339  
---------------------------------- ----- -------------------- ------- -------------------- ---------- -------------------- ------ -------------------- ---------- -------------------- ----- -------------------- ----- -------------------- ----- --------------------
                                                                                                                                                                                                                                                    

(a) Includes International, BETM and generation eliminations.

(b) Excludes deactivation costs of $13 million.

(c) Excludes reorganization costs of $19 million.

(d) Excludes loss on sale of business of $83 million, loss on debt extinguishment of $69 million, impairments of $56 million, and acquisition-related transaction & integration costs of $7 million.

The following table reconciles the condensed financial information to Adjusted EBITDA:

                                                                                                                                                                                                                           
($ in millions)                   Condensed   Interest, tax,         MtM         Deactivation      Other adj.     Adjusted  
                                  financial                       depr. amort.                                                                                                                                    EBITDA
                                 information
------------------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
  Operating revenues                  4,907                                  29                                 422                      --                      --                         5,358
  Cost of operations                  2,252              (23 )                               450   --   --      2,679  
------------------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
Gross margin                          2,655                                  52                                 (28 )                    --                      --                         2,679
                                      1,019                      --                      --                                 (13 )                    --                         1,006
  Operations & maintenance and
  other cost of operations
                                        520                                                                                                                                             (19 )                         501
  Selling, marketing, general &
  administrative (a)
  Other expense/(income) (b)          1,336           (1,961 )                    --   --              458       (167 )
------------------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
(Loss)/Income from Continuing          (220 )                             2,013              (28 )                                13             (439 )                       1,339  
Operations
------------------------------- ----------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------------- -------------------- -------- --------------------
                                                                                                                                                                                                                           

(a) Other adj. includes reorganization costs of $19 million.

(a) Other adj. includes loss on sale of business of $83 million, loss on debt extinguishment of $69 million, impairments of $56 million, and acquisition-related transaction & integration costs of $7 million.

Appendix Table A-5: 2017 and 2016 QTD and YTD Second Quarter Adjusted Cash Flow from Operations Reconciliations

The following table summarizes the calculation of adjusted cash flow operating activities providing a reconciliation to net cash provided by operating activities:

                                                          
                                                                                              Three Months Ended
($ in millions)                                             June 30, 2017    June 30, 2016  
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Net Cash Provided by Operating Activities                                                195                                 533
Reclassifying of net receipts for settlement of acquired                                   1                                 (35 )
derivatives that include
financing elements
Sale of Land                                                                  --                      --
Merger, integration and cost-to-achieve expenses (1)                          --                                   6
Return of capital from equity investments                                                  5                                   6
Adjustment for change in collateral                                   140             (140 )
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Adjusted Cash Flow from Operating Activities                          341              370  
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Maintenance CapEx, net (2)                                                               (49 )                               (26 )
Environmental CapEx, net                                                                  (7 )                               (95 )
Preferred dividends                                                           --                      --
Distributions to non-controlling interests                            (45 )                               (40 )
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Free Cash Flow Before Growth Investments (FCFbG)                      240              209  
======================================================== ==================== ============== ==================== ============== ====================
                                                                                                                                  

(1) 2016 includes cost-to-achieve expenses associated with the $150 million savings announced on September 2015 call.

(2) Includes insurance proceeds of $27 million in 2016

                                                          
                                                                                               Six Months Ended
($ in millions)                                             June 30, 2017    June 30, 2016  
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Net Cash Provided by Operating Activities                                                112                                 880
Reclassifying of net receipts for settlement of acquired                                   2                                   4
derivatives
that include financing elements
Sale of Land                                                                               8                      --
Merger, integration and cost-to-achieve expenses (1)                          --                                  25
Return of capital from equity investments                                                 18                                  11
Adjustment for change in collateral (2)                               268             (323 )
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Adjusted Cash Flow from Operating Activities                          408              597  
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Maintenance CapEx, net (3)                                                               (84 )                               (92 )
Environmental CapEx, net                                                                 (25 )                              (162 )
Preferred dividends                                                           --                                  (2 )
Distributions to non-controlling interests                            (91 )                               (82 )
-------------------------------------------------------- -------------------- -------------- -------------------- -------------- --------------------
Free Cash Flow Before Growth Investments (FCFbG)                      208              259  
======================================================== ==================== ============== ==================== ============== ====================
                                                                                                                                  

(1) 2016 includes cost-to-achieve expenses associated with the $150 million savings announced on September 2015 call.

(2) Reflects change in NRG’s cash collateral balance as of 2Q2017 including $79MM of collateral postings from our deconsolidated affiliate (GenOn)

(3) Includes insurance proceeds of $18 million and $30 million in 2017 and 2016, respectively

Appendix Table A-6: Second Quarter YTD 2017 Sources and Uses of Liquidity

The following table summarizes the sources and uses of liquidity through second quarter of 2017:

                                                                    
($ in millions)                                 Six Months Ended    
                                                  June 30, 2017
                                               
--------------------------------------------- -------------------- --------------------
Sources:
 Adjusted cash flow from operations                            408
 Increase in credit facility                                   508
 Issuance of Agua Caliente HoldCo debt                         130
 Growth investments and acquisitions, net                      112
 Asset sales                                                    27
 NYLD Equity Issuance                                           16
 Tax Equity Proceeds                                            16  
--------------------------------------------- -------------------- --------------------
Uses:
 Debt Repayments, net of proceeds                             (381 )
 Collateral (1)                                               (268 )
 Maintenance and environmental capex, net (2)                 (109 )
 Distributions to non-controlling interests                    (91 )
 Common Stock Dividends                                        (19 )
 Other Investing and Financing                                  (4 )
--------------------------------------------- -------------------- --------------------
Change in Total Liquidity                                      345  
--------------------------------------------- -------------------- --------------------
                                                                    

(1) Reflects change in NRG’s cash collateral balance as of 2Q2017 including $79MM of collateral postings from our deconsolidated affiliate (GenOn)

(2) Includes insurance proceeds of $18 million.

Appendix Table A-7: 2017 Adjusted EBITDA Guidance Reconciliation

The following table summarizes the calculation of Adjusted EBITDA providing reconciliation to net income:

                                                                     
                                                                                                                          2017 Adjusted EBITDA
                                                                                                                             Prior Guidance
                                                                                                            -------------------------------------------------
($ in millions)                                                         Low            High
----------------------------------------------------------------- -------------------- -------------------- ------ -------------------- --------------------
GAAP Net Income (1)                                                                                            150                    350
Income Tax                                                                                                      80                                        80
Interest Expense & Debt Extinguishment Costs                                                                 1,065                                     1,065
Depreciation, Amortization, Contract Amortization and ARO Expense                                            1,235                                     1,235
Adjustment to reflect NRG share of adjusted EBITDA in                                                          110                                       110
unconsolidated
affiliates
Other Costs (2)                                                                                                 60                                        60
-----------------------------------------------------------------                                           ------                      --------------------
Adjusted EBITDA                                                        2,700                  2,900
----------------------------------------------------------------- -------------------- -------------------- ------ -------------------- --------------------
                                                                                                                                         
                                                                     
                                                                                                                          2017 Adjusted EBITDA
                                                                                                                            Revised Guidance
                                                                                                            -------------------------------------------------
($ in millions)                                                         Low            High
----------------------------------------------------------------- -------------------- -------------------- ------ -------------------- --------------------
GAAP Net Income (1)                                                                                            360                    560
Income Tax                                                                                                      80                                        80
Interest Expense & Debt Extinguishment Costs                                                                   825                                       825
Depreciation, Amortization, Contract Amortization and ARO Expense                                            1,150                                     1,150
Adjustment to reflect NRG share of adjusted EBITDA in                                                          110                                       110
unconsolidated
affiliates
Other Costs (2)                                                                                                 40                                        40
-----------------------------------------------------------------                                           ------                      --------------------
Adjusted EBITDA                                                        2,565                  2,765
----------------------------------------------------------------- -------------------- -------------------- ------ -------------------- --------------------
                                                                                                                                         

(1) For purposes of guidance, fair value adjustments related to derivatives are assumed to be zero.

(2) Includes deactivation costs, gain on sale of businesses, asset write-offs, impairments and other non-recurring charges.

Appendix Table A-8: 2017 FCFbG Guidance Reconciliation

The following table summarizes the calculation of Free Cash Flow before Growth providing reconciliation to Cash from Operations:

                                                                                                        
                                                                        2017                2017       
------------------------------------------------------------- --------------------                      --------------- -------------------- -------------------- --------------- --------------------
($ in millions)                                                                            Prior                        Revised
                                                                                                            Guidance                                                            Guidance
------------------------------------------------------------- --------------------                      --------------- -------------------- -------------------- -----------------------------------
Adjusted EBITDA                                                                                         $2,700 - $2,900                                           $2,565 - $2,765
Cash Interest payments                                                                                           (1,065 )                                                    (825 )
Cash Income tax                                                                                                     (40 )                                                     (40 )
Collateral / working capital / other                                                            (240 )                                   60  
------------------------------------------------------------- --------------------                      --------------- -------------------- -------------------- --------------- --------------------
Cash From Operations                                                                                    $1,355 - $1,555                                           $1,760 - $1,960
Adjustments: Acquired Derivatives, Cost-to-Achieve, Return of                         --      --  
Capital
Dividends, Collateral and Other
------------------------------------------------------------- --------------------                      --------------- -------------------- -------------------- --------------- --------------------
Adjusted Cash flow from operations                                                                      $1,355 - $1,555                                           $1,760 - $1,960
Maintenance capital expenditures, net                                                                      (280) - (310 )                                            (210) - (240 )
Environmental capital expenditures, net                                                                      (40) - (60 )                                              (25) - (45 )
Distributions to non-controlling interests                                              (185) - (205 )                         (185) - (205 )
------------------------------------------------------------- --------------------                      --------------- -------------------- -------------------- --------------- --------------------
Free Cash Flow - before Growth Investments                                             $800 - $1,000     $1,290 - $1,490  
------------------------------------------------------------- --------------------                      --------------- -------------------- -------------------- --------------- --------------------
                                                                                                                                                                                   

EBITDA and Adjusted EBITDA are non-GAAP financial measures. These measurements are not recognized in accordance with GAAP and should not be viewed as an alternative to GAAP measures of performance. The presentation of Adjusted EBITDA should not be construed as an inference that NRG’s future results will be unaffected by unusual or non-recurring items.

EBITDA represents net income before interest (including loss on debt extinguishment), taxes, depreciation and amortization. EBITDA is presented because NRG considers it an important supplemental measure of its performance and believes debt-holders frequently use EBITDA to analyze operating performance and debt service capacity. EBITDA has limitations as an analytical tool, and you should not consider it in isolation, or as a substitute for analysis of our operating results as reported under GAAP. Some of these limitations are:

-- EBITDA does not reflect cash expenditures, or future requirements for capital expenditures, or contractual commitments;

-- EBITDA does not reflect changes in, or cash requirements for, working capital needs;

-- EBITDA does not reflect the significant interest expense, or the cash requirements necessary to service interest or principal payments, on debt or cash income tax payments;

-- Although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA does not reflect any cash requirements for such replacements; and

-- Other companies in this industry may calculate EBITDA differently than NRG does, limiting its usefulness as a comparative measure.

Because of these limitations, EBITDA should not be considered as a measure of discretionary cash available to use to invest in the growth of NRG’s business. NRG compensates for these limitations by relying primarily on our GAAP results and using EBITDA and Adjusted EBITDA only supplementally. See the statements of cash flow included in the financial statements that are a part of this news release.

Adjusted EBITDA is presented as a further supplemental measure of operating performance. As NRG defines it, Adjusted EBITDA represents EBITDA excluding impairment losses, gains or losses on sales, dispositions or retirements of assets, any mark-to-market gains or losses from accounting for derivatives, adjustments to exclude the Adjusted EBITDA related to the non-controlling interest, gains or losses on the repurchase, modification or extinguishment of debt, the impact of restructuring and any extraordinary, unusual or non-recurring items plus adjustments to reflect the Adjusted EBITDA from our unconsolidated investments. The reader is encouraged to evaluate each adjustment and the reasons NRG considers it appropriate for supplemental analysis. As an analytical tool, Adjusted EBITDA is subject to all of the limitations applicable to EBITDA. In addition, in evaluating Adjusted EBITDA, the reader should be aware that in the future NRG may incur expenses similar to the adjustments in this news release.

Management believes Adjusted EBITDA is useful to investors and other users of NRG’s financial statements in evaluating its operating performance because it provides an additional tool to compare business performance across companies and across periods and adjusts for items that we do not consider indicative of NRG’s future operating performance. This measure is widely used by debt-holders to analyze operating performance and debt service capacity and by equity investors to measure our operating performance without regard to items such as interest expense, taxes, depreciation and amortization, which can vary substantially from company to company depending upon accounting methods and book value of assets, capital structure and the method by which assets were acquired. Management uses Adjusted EBITDA as a measure of operating performance to assist in comparing performance from period to period on a consistent basis and to readily view operating trends, as a measure for planning and forecasting overall expectations, and for evaluating actual results against such expectations, and in communications with NRG’s Board of Directors, shareholders, creditors, analysts and investors concerning its financial performance.

Adjusted cash flow from operating activities is a non-GAAP measure NRG provides to show cash from operations with the reclassification of net payments of derivative contracts acquired in business combinations from financing to operating cash flow, as well as the add back of merger, integration and related restructuring costs. The Company provides the reader with this alternative view of operating cash flow because the cash settlement of these derivative contracts materially impact operating revenues and cost of sales, while GAAP requires NRG to treat them as if there was a financing activity associated with the contracts as of the acquisition dates. The Company adds back merger, integration related restructuring costs as they are one time and unique in nature and do not reflect ongoing cash from operations and they are fully disclosed to investors.

Free cash flow (before Growth Investments) is adjusted cash flow from operations less maintenance and environmental capital expenditures, net of funding, preferred stock dividends and distributions to non-controlling interests and is used by NRG predominantly as a forecasting tool to estimate cash available for debt reduction and other capital allocation alternatives. The reader is encouraged to evaluate each of these adjustments and the reasons NRG considers them appropriate for supplemental analysis. Because we have mandatory debt service requirements (and other non-discretionary expenditures) investors should not rely on Free Cash Flow before Growth Investments as a measure of cash available for discretionary expenditures.

Free Cash Flow before Growth Investments is utilized by Management in making decisions regarding the allocation of capital. Free Cash Flow before Growth Investment is presented because the Company believes it is a useful tool for assessing the financial performance in the current period. In addition, NRG’s peers evaluate cash available for allocation in a similar manner and accordingly, it is a meaningful indicator for investors to benchmark NRG’s performance against its peers. Free Cash Flow before Growth Investment is a performance measure and is not intended to represent net income (loss), cash from operations (the most directly comparable U.S. GAAP measure), or liquidity and is not necessarily comparable to similarly titled measures reported by other companies.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170803005544r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170803005544/en/

SOURCE: NRG Energy, Inc.

NRG Energy, Inc. 
Media: 
Sheri Woodruff, 609-524-4608 
or 
Marijke Shugrue, 609-524-5262 
or 
Investors: 
Kevin L. Cole, CFA, 609-524-4526 
or 
Lindsey Puchyr, 609-524-4527


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